• USD/JPY drifted lower as geopolitical tensions boosted demand for the safe-haven Japanese Yen.
• Fox News reported fresh US airstrikes on tankers attempting to break the blockade, while Iran warned it would respond “with full force” to any aggression.
• US Nonfarm Payrolls rose by 115K in April, beating expectations of 62K, though softer Average Hourly Earnings at 0.2% MoM limited broader US Dollar strength.

The USD/JPY pair fell toward the 156.60 region on Friday, as the Japanese Yen (JPY) gained modest support from safe-haven flows despite resilient United States (US) labor-market data limiting broader downside pressure on the US Dollar (USD).

Market sentiment turned cautious after Fox News reported that the US military carried out additional airstrikes targeting several empty tankers attempting to break the blockade. At the same time, an Iranian Foreign Ministry spokesperson warned that Tehran’s armed forces are “fully prepared and closely monitoring the situation,” adding that Iran would respond “with full force” to any aggression or provocation.

The geopolitical escalation briefly boosted demand for traditional safe-haven assets, including the JPY, although the broader market reaction remained relatively muted, with the USD still holding near weekly lows.

Meanwhile, the latest US Nonfarm Payrolls (NFP) report showed the US economy added 115K jobs in April, above market expectations of 62K, while the Unemployment Rate remained steady at 4.3%. Average Hourly Earnings slowed to 0.2% MoM, signaling easing wage pressure despite continued labor-market resilience.

Short-term technical analysis:

On the four-hour chart, USD/JPY trades at 156.63, holding a capped tone as it sits beneath both the 20-period Simple Moving Average (SMA) at 156.77 and the 100-period SMA at 158.39. The immediate pivot at 156.63 is being retested from below, while a mid-40s Relative Strength Index (RSI) around 44 suggests lacking bullish momentum and reinforces the idea of a corrective consolidation rather than a decisive recovery.

On the topside, initial resistance aligns with the 156.63 pivot, followed by a nearby barrier at 156.71 and then 156.82, before the 20-period SMA at 156.77 and the more distant 100-period SMA at 158.39 cap the broader recovery attempts. On the downside, the key support sits at 156.44; a sustained break below this floor would expose deeper weakness, whereas holding above it could keep the pair confined to a range beneath the clustered resistances overhead.

(The technical analysis of this story was written with the help of an AI tool.)